Defvas Project

In Partnership with TEGoVA and the IRRV

EUROPEAN VALUATION STANDARD 1 MARKET VALUE

Defvas Project

In Partnership with TEGoVA and the IRRV

INTRODUCTION

• Market value

• Value

• The “market value” of an asset

• The ultimate test for market value

Defvas Project

In Partnership with TEGoVA and the IRRV

SCOPE

• EU legislation

• Real estate and related property rights

• Marketable

• Marked distinction

• The range of assumptions

Defvas Project

In Partnership with TEGoVA and the IRRV

TEGoVA’s APPROVED DEFINATION OF MARKET VALUE

• Market value means

• Directive 2006/48/EC

• Market rent

• Acted knowledgeably, prudently and without compulsion

Defvas Project

In Partnership with TEGoVA and the IRRV

DEFINITION OF MARKET VALUE IN EU AND EEA LEGISLATION

• There are several definitions of market value within

EU legislation

• The Capital Requirements Directive definition

• Articles 84 to 89 of the Directive

• State Aid Communication and the Insurance Accounts

Directive

• VAT definition

• EU accounting definition

Defvas Project

In Partnership with TEGoVA and the IRRV

COMMENTARY

• The advantage of the definition used in EVS1 over the other

available EU definitions

• The definition in EVS1

• The result

• The real property being valued

• The transaction

• The date of valuation

• The parties – hypothetical, willing and competitive

• The marketing

• The parties’ consideration of the matter

• Other matters